Defense major Lockheed Martin Corporation (LMT) was awarded a $40.3 million contract by the U.S. Air Force. Per the contract, Lockheed will be engaged in the production of Paveway II Plus Laser Guided Bomb (LGB) kits.
The Paveway II Plus LGB kit is an improved laser guidance package consisting of an MAU-209C/B computer control group. The MAU-209C/B computer control group includes electronic guidance system and an airfoil group. These ensure the stability of weapons in standard GBU-10 MK-84 (2,000 lb.), GBU-12 MK-82 (500 lb.) and GBU-16 MK-83 (1,000 lb.) series configurations. Thus, the Paveway II Plus LGB kit enhances the performance and precision of the system substantially.
The high quality of this laser guided package has prompted the defense department to repeat orders. The contract is the eighth in line under a five-year indefinite delivery, indefinite quantity contract. Deliveries are scheduled to start in Jun 2015. The deliveries will consist of computer control groups and airfoil groups for GBU-10 and GBU-12 bombs.
Lockheed continues to emphasize on improving its fleet of precision-guided systems and offer value to its customers. Its steady efforts to provide quality products to its customers have enabled it to win multiple contracts, be it big ticket wins or smaller ones.
Lockheed was recently awarded a $271.8 million modification contract from the government of Taiwan to install 142 aircraft kits for the upgrade of F-16 aircraft jets. It had also won a $50 million modification contract from the UK government to provide engineering and operational support for the integration of F-35 Joint Strike Fighter operations with that of the Queen Elizabeth Class carrier.
Lockheed currently holds a Zacks Rank #3 (Hold). Better-ranked stocks in the same industry include Air Industries Group (AIRI), The Boeing Co. (BA) and General Dynamics Corp. (GD). All three stocks carry a Zacks Rank #2 (Buy).
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